Mike Redmond

NDP Leader Mike Redmond in a scrum at Province House. (CBC)

The leader of Prince Edward Island's New Democratic Party is calling on the province to make big changes to the way it looks at its budgets.

Mike Redmond says he wants P.E.I. to adopt revolving fund budgeting. That means money left over from one fiscal year will carry to the next if it isn't spent.

Redmond says the current system often leads to hasty and wasteful spending.

"Obviously with the state we're in financially, we better sharpen the pencils and change ways in how we are structured financially and fiscally in this province if we're ever going to have a hope to change our financial situation," he said.

Redmond says P.E.I. could look to other provinces and municipalities who have already adopted revolving budgeting.

Finance Minister Wes Sheridan is projecting a $39.7 million deficit for 2014-15, and a return to a balanced budget in 2015-16, with a slim $100,000 surplus. The province last had a balanced budget in 2007-08.